Dispute over snagging and warranty issues

The buyer’s claim

The buyer claimed the builder had failed to resolve a number of snagging issues within a reasonable timeframe and requested compensation of £15,000.

The builder’s defence

The builder stated the buyer’s complaint related to their warranty body’s technical standards and was therefore not covered by the Code scheme.  No offer of settlement was made.

The adjudicator’s findings

The adjudicator noted that the builder was obligated to investigate the snagging issues reported, determine what works they would agree to complete, if any, and respond to the buyer in a timely manner with a timescale for completing the work. Alternatively, they should provide a clear explanation as to why they do not consider certain issues as defects that they are required to resolve.

The adjudicator further noted that over 60 contractors had attended the property during a 12-month period and on a number of occasions the contractors had not attended on the agreed date or arrived unannounced, meaning appointments had to be rearranged. A final position on the outstanding snagging issues had not yet been made and the builder was continuing to address these issues with the buyer.

While the adjudicator noted that the builder remained committed to resolving the issues and was seeking to carry out further works, it was not clear why there was not a more definitive plan in place to address the issues or whether the builder was able to offer the buyer their final position on the outstanding matters. The adjudicator therefore found breaches of Sections 4 and 5 of the Code.

Learning points

For buyers:

• The Code’s Independent Dispute Resolution Scheme can only consider matters that are covered by the Code – which includes after sales and complaints handling. Download our Code Scheme with Builder Guidance to understand exactly what is covered and your builder’s responsibilities.
• Sums awarded under the Code’s IDRS are based on evidence so be realistic in the amount you claim and provide supporting evidence such as quotes and invoices as back up, rather than just claiming the maximum amount available.
• Take a look at our complaints pack to identify who to go to with what issues and read our blog on how to raise an effective complaint.  The Code sets out strict guidelines for complaints handling and your builder must respond promptly and provide an estimate of the timescales for completion, including the reasons for any delay.

For builders:

• Although the Code doesn’t cover build quality issues per se, it does cover pre-completion snagging and after sales, including your obligations in responding to and resolving snagging-related complaints from buyers.
• Where defects fall under the Warranty Provider, explain this to your buyers and refer them to their relevant provider. 
• The Code sets out requirements for handling complaints which includes responding to complaints promptly, providing a timescale for remedial works and completing the works within a reasonable timeframe. 
• You must keep your buyers updated on progress and provide an explanation and updated timescales in the event of any delays.
• Read the Code requirements with builder guidance to understand your responsibilities under the Code and our Right First Time factsheet on handling customers complaints.